InnoVen Capital Startup Outlook Report

Profitability What will

Profitability What will you focus on in 2017? When do you expect to turn profitable? 38% 48% 53% 80% 98% 100% 75% Profitability 62% 52% 47% 25% Growth 11% 36% Idea / Proof of Concept Early revenues ($1 million Annual Revenues) Respondents by revenue stage Lower 34% More than $10 million Annual Revenues Higher 38% Already profitable < 1 year 1 - 2 years 2 - 4 years 4+ years Time to profitability • 6% of the VC funded companies are currently profitable • 67% of VC funded start-ups reduced burn in 2016 from 2015 • Interesting, early stage start-ups (angel funded and bootstrapped) are largely aiming for profitability in the next two years InnoVenCapital: StartupOutlookReport 2017 6